Aboitiz-led Union Bank of the Philippines breached the P10-billion net profit mark last year, the highest in the bank’s 49-year history, on the back of higher interest earnings, fee-based income and profit from the sale of securities.
In a press statement on Monday, Union Bank said net profit surged by 67 percent year-on-year to P10.1 billion. The earnings performance translated to a return on equity of 16.9 percent, which improved from 10.9 percent in 2015.
“All of our major business segments contributed significantly to the bottom line. More importantly, we were able to scale up our recurring revenue base, while making substantial headway in our journey toward digital transformation,” said Edwin Bautista, Union Bank president and chief operating officer.
The bank’s loan book went up by 31 percent to P235.4 billion last year, allowing total assets to close the year at P524.4 billion. The bank grew its loan book at a faster pace than its peers.
Based on the latest Bangko Sentral ng Pilipinas data, commercial banks grew their outstanding loans by 18.6 percent year-on-year in November.
On the funding side, Union Bank’s total deposits grew by 21 percent to P376.5 billion, with low-cost current account-savings account deposits increasing by 18 percent.
The combined growth in customer loans and deposits boosted recurring revenues by 21 percent to P19.2 billion.